Please answer the following problems. Kindly show all the possible information, including the formula and solutions. The choices below will guide you in determining if your computations or solutions are correct. Please submit your answers on December 1, 2020. 1. Emma Watson has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock D and the remainder is invested in Stock N. D's beta is 1.50 and N's beta is 0.70. What is the portfolio's beta? B. 0.72 C. 0.80 D. 0.89 A. 0.65 E. 0.98 2. Jona Manufacturing Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return? B. 8.12% C. 8.55% A. 7.72% E. 9.50% D. 9.00% 3. Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the form has a beta of 1.00, and (5) its realized rate of return has averaged 15.0% over the last 5 years. B. 10.83% C. 11.40% A. 10.29% E. 12.60% D. 12.00% 4. Florence Industrial Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Probability Stock's State of of State Expected the Economy Occurring Return Boom 0.45 25% Normal 0.50 15% Recession 0.05 5% B. 0.3069 A. 0.2839 E. 0.3813 C. 0.3299 D. 0.3547 5. Jensen and Holmes Inc's stock has an expected return of 12.25%, a beta of 1.25, and is in equilibrium. If the risk-free rate is 5.00%, what is the market risk premium? B. 5.95% A. 5.80% F. 6.40% C. 6.09% D. 6.25%